• Consolidated Total Revenue of €3,988.2m, +24% YoY, reflecting continuing organic growth
• Consolidated Adjusted EBITDA of €1,167.4m, +21% YoY, consolidated Adjusted EBITDA margin of 46.1%
• Continued strong growth in online sales - online channel contributed 44% of Gross gaming revenue in the Czech Republic, compared with 38% in 2021
• Awarded the license to operate the UK National Lottery for 10 years starting in February 2024
• In Q4, reached agreement to acquire Camelot UK Lotteries Limited (“Camelot UK”), the current operator of the UK National Lottery, and the Camelot Lottery Solutions group of companies (the “Camelot LS Group”), the current operator of the Illinois Lottery, USA. Both transactions closed in Q1 2023
• Raised €600m fixed and floating senior secured notes and €1.6bn equivalent bank syndicated loan financing
• Consolidated Net debt / Adjusted EBITDA of 1.6x as of 31 December 2022

Selected consolidated financial data (FY 2022/2021)

€ millions	FY 2022	FY 2021	Δ
Total revenue	3988.2	3221.1	24%
of which: Gross gaming revenue ("GGR")	3811.3	3073.2	24%
Net revenue	2531.4	1993.5	27%
Operating EBITDA	1132.3	954.0	19%
Adjustments to EBITDA	35.1	12.8
Adjusted EBITDA	1167.4	966.8	21%
Adjusted EBITDA margin	46.1%	48.5%	-2.4 p.p.

In Q1 2023 we closed the acquisitions of Camelot UK, the current operator of the UK National Lottery, and the Camelot LS Group, the current operator of the Illinois Lottery (the “Camelot Acquisitions”). For the 12 months ending 31 March 2022 these entities had combined reported EBITDA of €179.6 million, implying pro-forma Adjusted EBITDA of €1,347.0 million.

Robert Chvatal, Allwyn CEO, commented:

“I am pleased to report that Allwyn achieved another year of strong financial results in 2022, reflecting our continued successful execution of our organic and inorganic growth strategies. These results demonstrate how much the business has progressed in the last several years, with both Total Revenue and EBITDA growing by over 90% since 2019 – during which time we have also deleveraged by more than 1x Adjusted EBITDA, significantly increased our ownership in our existing businesses, and strengthened our platform and increased our strategic optionality and diversification through securing entries into the UK and US markets. While delivering this strong performance, we have remained focused on our responsibilities to all our stakeholders and on safer gaming. Our Total Revenue increased by 24% year-on-year, reflecting strong organic growth as well as some impact from COVID-19 on last year’s numbers, which was supported by strong progress in digital channels and our ongoing focus on providing a compelling customer proposition and operational efficiency. We once again saw the resilience of demand for our products, even in an environment where consumer spending is under pressure. We also passed a key milestone in Q4, with quarterly Gross gaming revenue exceeding €1 billion for the first time. We continued to deliver strong margins and to generate robust free cashflows, reflecting our favourable cost structure and focus on cost and capital efficiency. We achieved significant progress in our inorganic growth strategy, increasing our shareholding in OPAP to over 50%, acquiring a 36.75% interest in Kaizen, the fast-growing online sports betting and iGaming operator, and with our success in the tender to operate the UK National Lottery, which provides an excellent demonstration of our leveraging learnings and expertise from across our markets to deliver for all our stakeholders.
We’ve continued to make great progress with this strategy in 2023, completing two landmark acquisitions. First, the acquisition of Camelot UK, the current operator of the UK National Lottery, which supports the successful delivery of the National Lottery through 2023 and over the next decade. Second, we have acquired Camelot Lottery Solutions, which operates the Illinois Lottery, adding a seventh lottery market to our footprint and providing interesting strategic optionality, with a great platform in the US market and in-house iLottery technology. Our strong operational execution, strategic progress and solid financial performance supported our successful financing activities during the year, with Allwyn issuing €600 million of bonds and entering into a new €1.6 billion Senior Facilities Agreement with a syndicate of international banks. These transactions further diversified our sources of funding, significantly extended our debt maturities, simplified our capital structure, provided funding for our investments in the UK and inorganic growth, and increased our liquidity resources. In financing, as in our growth strategies, we’ve seen the great momentum from 2022 continuing into 2023, with, Allwyn signing a further €335 million of accordion loan facilities. Overall, I am very pleased with Allwyn’s financial and strategic performance in 2022 and the start of 2023 and believe we are well placed for the next chapters of our growth story.
I would like to thank the entire Allwyn team for their hard work and for seizing opportunities to progress our strategic priorities and am very much looking forward to working together with them and with new colleagues from Camelot in 2023.”

FY 2022 financial review

2022 was a record year of financial performance for Allwyn, reflecting strong growth across all our geographies and product lines. This very strong performance reflects organic factors as well as some impact from COVID-19 in the comparative period, with no impact on our consolidation perimeter from business combinations during the period or the comparative period. The acquisitions of Camelot UK and the Camelot LS Group closed after the end of the period, while the increase of our interest in Kaizen did not impact our consolidated results. Our consolidated Total Revenue increased by 24% to €3,988.2 million and our consolidated Adjusted EBITDA increased by 21% to €1,167.4 million, with an Adjusted EBITDA to Net Revenue margin of 46.1%. Revenue growth was primarily driven by the online channel, as well as by the very strong performance of our casinos business in Austria and internationally, which was impacted by COVID-19 in the comparative period. Growth in Adjusted EBITDA was primarily driven by the strong Revenue growth, with margins broadly stable in all our geographies. The slight reduction in our consolidated Adjusted EBITDA margin primarily reflects shifts in the contribution of our different businesses. On a pro rata basis, our GGR increased by 32% year-on-year to €3,373.0 million (without giving pro-forma effect to the Camelot Acquisitions). On a pro rata basis, our Adjusted EBITDA increased by 31% year-on-year to €780.7 million (without giving pro-forma effect to the Camelot Acquisitions). We note that general consumer sentiment has been impacted by inflationary pressures. However, our business saw only a limited impact due to the low price point of our products and low average spend per customer, as well as our large number of regular players. Our profitability was also supported by the fact that a significant portion of our costs is directly linked to revenues and the low proportion of energy in our cost base.

FY 2022 key strategic developments

UK National Lottery

In March 2022, the UK Gambling Commission announced Allwyn International a.s. as its Preferred Applicant to operate the UK National Lottery for 10 years starting in February 2024, following a rigorous competitive tender process. In September, our 100% owned subsidiary Allwyn Entertainment Ltd was officially awarded the license.

Kaizen

In April 2022, the Group announced that it had reached agreement with a wholly owned subsidiary of OPAP to acquire its 36.75% interest in the business activities of Kaizen Gaming Limited outside Greece and Cyprus (“Kaizen”). The purchase price comprises (i) an upfront cash consideration of €50.0 million, on a debt free and cash free basis, and (ii) performance-based earnout payments. The purchase price corresponds to the fair market value of the interest, as evaluated by an independent financial advisor. Kaizen is a fast-growing online sports betting and iGaming operator using proprietary gaming technology. The transaction results in an 18.4% increase in the Group’s effective interest in Kaizen, which will continue to be accounted for as an equity method investee of the Group. The acquisition was completed on 27 December 2022.

Stoiximan

In June 2022, OPAP made a payment of €106.4 million, representing the substantial majority of the outstanding contingent consideration from its purchase of Stoiximan.

Agreement to acquire Camelot UK

In November 2022, Allwyn announced an agreement to acquire Camelot UK Lotteries, the current operator of the National Lottery under a license that runs until 31 January 2024. The acquisition was subsequently completed on 5 February 2023.

Agreement to acquire the Camelot LS Group

In December 2022, Allwyn announced an agreement to acquire the Camelot LS Group. The Camelot LS Group operates the Illinois Lottery under a private management agreement through its operating company, Camelot Illinois LLC, partners with the Arkansas Scholarship Lottery to enhance its lottery operations, and includes a technology arm that provides iLottery products, services and content to lotteries and their players in Europe and North America. The acquisition was subsequently completed on 3 March 2023.

OPAP

In 2022, the Company increased its shareholding in OPAP by 9.47% to 49.84% of OPAP’s total shares outstanding (including treasury shares) through open market purchases and participation in OPAP’s scrip dividend programme. Excluding OPAP’s treasury shares from the share count, this represents an economic interest of 50.09%.

Disclaimer

This document does not represent an offer, constitute or form part of, and should not be construed as an advertisement, an offer or an invitation to subscribe for or to purchase securities of Allwyn International a.s. or its subsidiaries or affiliates from time to time. The preliminary results for the period ended 31 December 2022, are an estimate, based on information available to management as of the date of this release, and are subject to further changes upon completion of the Company’s standard annual closing procedures. This update does not present all necessary information for an understanding of the Group’s financial condition as of the date of this release, or its results of operations for the year and the fourth quarter. As the Company completes its year-end financial close process and finalizes its financial statements for the year, it will be required to make significant judgments in a number of areas. It is possible that the Company may identify items that require it to make adjustments to the preliminary unaudited financial information set forth above and those changes could be material. The Company does not intend to update such financial information prior to release of its final audited annual financial statement. We present certain unaudited pro rata financial information. The unaudited pro rata financial information included in this document has been prepared by the Company’s management. The unaudited pro rata financial information is not intended to, and does not represent, historical or future performance for any period. This announcement does not form, and should not be construed as, the basis of any credit analysis or other evaluation, an investment or lending recommendation, advice, a valuation or a due diligence review. This announcement may include forward-looking statements regarding certain of our plans and our current goals, intentions, beliefs and expectations concerning, among other things, our future results of operations, financial condition, liquidity, prospects, growth, strategies, pending acquisitions or other transactions, financing plans and the industries in which we operate. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Generally, but not always, words such as “may,” “could,” “should,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “assume,” “believe,” “plan,” “seek,” “continue,” “target,” “goal,” “would” or their negative variations or similar expressions identify forward-looking statements. By their nature, forward-looking statements are inherently subject to risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that the Group’s actual results of operations, financial condition and liquidity and the development of the industries in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. In addition, even if our results of operations, financial condition and liquidity and the development of the industries in which we operate are consistent with the forward-looking statements contained in this document, those past results or developments may not be indicative of results or developments in future periods. We do not undertake any obligation to review, update or confirm expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this document. No warranty or representation of any kind, express or implied, is or will be made in relation to, and to the fullest extent permissible by law, no responsibility or liability in contract, tort, or otherwise is or will be accepted by us or any of our directors, officers, employees, advisers or agents, or any other party as to the accuracy, completeness or reasonableness of the information contained in this announcement, including any opinions, forecasts or projections. Nothing in this document shall be deemed to constitute such a representation or warranty or to constitute a recommendation to any person to acquire any securities. Any estimates and projections in this announcement were developed solely for our use at the time at which they were prepared and for limited purposes which may not meet the requirements or objectives of the recipient of this announcement. Nothing in this document should be considered to be a forecast of future profitability or financial position and none of the information in the document is or is intended to be a profit forecast or profit estimate. The financial statements included this announcement have not been subject to any review or audit process by our independent auditors and may be subject to change after a review or audit process. We are not providing advice (whether in relation to legal, tax or accounting issues or otherwise). You should receive legal, tax, accounting and any other necessary advice from your advisors in relation to the contents of this announcement. This announcement has not been approved by any regulatory authority and does not represent financial statements within the meaning of applicable Czech or other law.